case - kentucky cases/99-352/99-352.pdf · sheet no. cancelling p.s.c. ry no. sheet no....

CASE NUMBER:

e M o w Det Earl Reed, Chairman

Jack Cline, Secretary 45oprestonsburgstreet Jack Howard, Treasurer

West Liberty, KY. 41472 Dennis Gulley, District Manager Cindy Montgomery, Office Manager

74sl204(oflioe) 60&7434895(Fax)

October 12, 1999

Ms. Helen Helton Executive Director Public Service Commission 730 Schenkel Lane Frankfort, Kentucky, 40602

Re: CaseNo. 99-352

Dear Ms. Helton:

Please accept the attached as verification of ‘Notice to Customers” on the above-mentioned case.

Sincerely,

0-3 Dennis Gulley

District Manager

I .

1

1

THE LICKING VALLEY COURlE? WEST LIUEI ITY. K Y . TELEPIIONE 741-3551

’1’1 IE WOLFE Couro‘Y News CAMI’IOf.(. ICY .

1 C L E I ’ I I O I l E 6611-3.195

E A R L W. I<IIJNEfI. PUULlSliEll A N D MANAGER

THE ELLIOTT COUNTY N E W S SANDY HOOK. K Y . 1ELEPHONE 7JB-5299

TELEI’ I IONES; 74 3-3 55 I 743-8824 (NICIiT)

C, N I i W S PAP 1: R AF 1: 1 DAV P ‘1’

1, Earl K i i i n c ~ ~ I l d i t o r o f t h e L ick i i ig V a l l e y C o u r i e r ,

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newspape r publ i s l iec l a t \Vest L i b e r t y and h a v i n g t h e l a r g e s t

g e n e r a l c i r c u l a t i o n o f any iieifspaper i n Morgaii County ,

Kentucky, do l i e r e b y ’ c e r t i f y t h a t froiii iiiy own ltnoivledge and

a c h e c k o f t h e f i l e s o f t1i:i.s i i e w s ~ ~ p , e ~ . t h a t t h e advertiseirient

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was i n s e r t e d in tlic l,.ick.i.iig V a l l c y C o u r i e r on / 6 - ‘7- 97

S u b s c r i b e d and sworn t o b e f o r e irie, a No ta ry P u b l i c , by Earl.

K i n n e r , Jr . t h i s ?I& day o f @ # 1 9 019 1

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COMMONWEALTH OF KENTUCKY PUBLIC SERVICE COMMISSION

' 730 SCHENKEL LANE POST OFFICE BOX 61 5 FRANKFORT, KY. 40602

(502) 564-3940

CERTIFICATE OF SERVICE

RE: Case No. 99-352 MORGAN COUNTY WATER DISTRICT

I, Stephanie Bell, Secretary of the Public Service Commission, hereby certify that the enclosed attested copy of the Commission's Order in the above case was served upon the following by U . S . Mail on September 29, 1999.

Parties of Record:

Jerry Jackson Manager Morgan County Water District 450 Prestonsburg Street West Liberty, KY. 41472 -

r' ' Secretary of the Commission

SB/hv Enclosure

COMMONWEALTH OF KENTUCKY

BEFORE THE PUBLIC SERVICE COMMISSION

In the Matter of:

PURCHASED WATER ADJUSTMENT OF ) MORGAN COUNTY WATER DISTRICT 1 CASE NO. 99-352

O R D E R

On August 23,1999, Morgan County Water District (“Morgan County”) applied for

approval to adjust its rates pursuant to the purchased water adjustment procedure.

KRS 278.015 and 807 KAR 5068. On September I O , 1999, Morgan County submitted

an amended application and its case was officially filed.

The Commission, having reviewed the record and being sufficiently advised,

finds that:

1.

(“West Liberty ’I).

2.

Morgan County purchases its water from the City of West Liberty

West Liberty is increasing the wholesale water rate charged to Morgan

County from $2.1 0 per 1,000 gallons to $2.25 per 1,000 gallons purchased, effective

October 1, 1999.

3. During the 12 months ending August 31, 1999, Morgan County purchased

a total of 45,429,000 gallons of water and sold 33,733,792 gallons.

4. The increase in the cost of purchased water will be $6,814.35, resulting in

a purchased water adjustment of $0.20 per 1,000 gallons of water. Based on a monthly

usage of 5,000 gallons, the average bill of a Morgan County customer would increase

I $1 .OO from $30.25 to $31.25 or 3.3 percent.

5. The calculations and tariff provided by Morgan County in its amended

application are correct and should be approved.

6. The purchased water adjustment of $0.20 per 1,000 gallons and the rates

in Appendix A, attached hereto and incorporated herein, are fair, just, and reasonable

and should be approved.

IT IS THEREFORE ORDERED that:

1. The purchased water adjustment of $0.20 per 1,000 gallons and the rates

I

I

in Appendix A are approved for services rendered on and after October 1 , 1999. I I

2. The amended tariff submitted by Morgan County is hereby approved as

filed.

3. Within 20 days from the effective date of this Order, Morgan County shall

file a copy of the notice to its customers and verification that such notice has been

~ given.

Done at Frankfort, Kentucky, this 29th day of September, 1999.

By the Commission

ATTEST:

APPENDIX A

APPENDIX TO AN ORDER OF THE KENTUCKY PUBLIC SERVICE COMMISSION IN CASE NO. 99-352 DATED SEPTEMBER 29, 1999

The following rates and charges are prescribed for the customers in the area

served by Morgan County Water District. All other rates and charges not specifically

mentioned herein shall remain the same as those in effect under authority of the

Commission prior to the effective date of this Order.

Monthlv Water Rates

5/8 inch x 3 /4 inch meter

First 2,000 gallons Next 3,000 gallons Next 5,000 gallons Next 5,000 gallons Over 15,000 gallons

1 inch meter

First 5,000 gallons Next 5,000 gallons Next 5,000 gallons Over 15,000 gallons

2 inch meter

First 15,000 gallons Over 15,000 gallons

$13.85 Minimum bill 5.80 per 1,000 gallons 4.80 per 1,000 gallons 4.55 per 1,000 gallons 4.30 per 1,000 gallons

$31.25 Minimum bill 4.80 per 1,000 gallons 4.55 per 1,000 gallons 4.30 per 1,000 gallons

$78.00 Minimum bill 4.30 per 1,000 gallons

t

MorganCountyWaterD'isgict

West Uberty, KY. 41472 74312w(Office) m67&3895(Faxl

4 5 o p l l x h d m r g ~

September 8, 1999

Ms. Helen Helton Executive Director Public Service Commission 730 Schenkel Lane Frankfort, Kentucky, 40602

Re: Case No. 99-352

Dear Ms. Helton:

Earl Reed, Chairman Jack Cline, Secretary Jack Howard, Treasurer

Dennis Gulley, District Manager Cindy Montgomery, ORice Manager

sf3 1 0 1999

Pursuant to Ms. Stephanie Bell's correspondence of September 2nd, please accept the enclosed modified Purchased Water Adjustment documents.

Should members of your staff have any questions, please feel free to contact me.

Sincerely,

Dennis Gulley District Manager

PURCHASED WATER ADJUSTMENT FOR WATER DISTRICTS AND ASSOCIATIONS

(807 KAR 5:068)

Morgan County Water District (Name of Utility)

September 7 , 1999 (Date)

450 Prestonsbure St. ~~ ~~~

(Address)

West Liberty, KY. 41472

SEP f 0 1999

(City, State)

606-743-1204 '

(Telephone Number)

1.a. Name of all wholesale suppliers and the base (current) rate and changed rate of each. In the event the water purchased is billed by the supplier on a rate that is not a flat rate schedule, the entire rate shedule must be shown. Attach additional sheets if necessary.

Sumlier(s1 Base Rate Chanqed Rate

City of West Liberty, KY. 2.10 2.25

1 .b. A copy of the supplier's notice of the cQanged rate showing the effective date of the increase is attached as Exhibit

I . l i

I . 2. Twelve-month period upon which the purchased water adjustment is based. (This twelve-month period must end within 90 days of this filing).

Aug 99 through Sept 98 From (month and year) (month and year)

3. Statement of water purchases. Where water is purchased from more than one supplier, purchases from each supplier must be shown separately. If water is purchased through a decling block rate schedule, purchases for each month must be shown. Attach an additional sheet if necessary.

Supplier(s1 Gallons Purchased during 12 month period

C i t y of West L i b e r t y 45,429,000

TOTAL PURCHASES

4. Total sales for the 12 month period 3 3 9 7 3 3 9 7 9 2

5. Increased water cost $6814.00

The increased water cost is the cost difference between purchases at base (current rate) and purchases at new rate.

4

6. Purchased water adjustment factor -20

The purchased water adjustment factor is obtained by dividing the increased cost of water by the total gallons sold.

Note: The purchased water adjustment factor is added to each thousand gallons sold. If the minimum usage is 2,000 gallons then the purchased water adjustment factor would be added to the minimum bill twice. Revised tariff sheets must be attached showing the rate to be charged by the utility and the effective date of the increased rates.

7. Proposed effective date 10/1/99

[J-A4 (Signature of Utility Officer) &'

District Manager (Title)

Form &or filing Rate .sc&ules

Morgan County Water D i s t r i c t

FOR M o r g a n a u n t y Community, Town or City

P.S.C. KY. NO.

SHEET NO.

CANCELLING P.S.C. RY NO.

SHEET NO.

CLASSIFICATION OF SERVICE

RATE PER UNIT MONTHLY RATES

5/8" x 3/4" Meter

F i r s t 2,000 g a l l o n s Next 3,000 g a l l o n s Next 5,000 g a l l o n s Next 5,000 g a l l o n s Over 15,000 g a l l o n s

1" Meter

F i r s t 5,000 . g a l l o n s Next 5,000 g a l l o n s Next 5,000 g a l l o n s Over 15,000 g a l l o n s

$13.85 Minimum B i l l 5.80 p e r 1,000 g a l l o n s 4.80 p e r 1,000 g a l l o n s 4.55 p e r 1,000 g a l l o n s 4.30 p e r 1,000 g a l l o n s

31.25 Minimum B i l l 4.80 p e r 1,000 g a l l o n s 4.55 p e r 1,000 g a l l o n s 4.30 p e r 1,000 g a l l o n s

2" Meter

F i r s t 15,000 g a l l o n s 78.00 Minimum B i l l Over 15,000 g a l l o n s 4.30 p e r 1,000 g a l l o n s

5.00 p e r 1,000 g a l l o n s Bulk Loading S t a t i o n s A su rcha rge of $5.35 w i l l be a s ses sed t o t h e S tacy Fork, 1162, and Eze l ex tens ions .

DATE OF ISSUE DATE EFFECTIVE MONTH DATE YEAR MONTH DATE Y E A R

ISSUED BY TITLE SIGNATURE OF OFFICER

Issued by authority of an Order of the Public Service Commission of Kentucky in C No. dated

Exhibit A

Paul E. Patton cover n o r


730 SCHENKEL LANE POST OFFICE BOX 61 5

FRANKFORT, KENTUCKY 40602

(502) 564-3940 www.psc.state.ky.us

fax (502) 564-3460

August 12, 1999

- John N. Hughes Attorney at Law Professional Service Corporation 124 West Todd Street Frankfort, Kentucky 40601

RE: Contract Filing No. C60-722, on behalf of Morgan County Water District, of a Water Purchase Contract with the City of West Liberty. - -

Dear Mr. Hughes: - -

The above referenced Contract filing has been received and reviewed. An accepted copy is enclosed for j c x files.

Since re1 y ,

,&ss Helton Tariff Review Branch Filings Division

Enclosure

PAYS

4N EQUAL OPPORTUNITY EMPLOYER MIFD

Ronald B. McCloud, Secretary Public Protection and

Regulation Cabinet

Helen Helton Executive Director

Public Service Commission

L The Seller Agrees:

This Agreement is made on the 3rd day of June , 1999, between the city of West Liberty, Kentucky, a municipal corporation, having its offices at 565 Main St., West Liberty, Kentucky, the "Seller" and the iMorgan County Water District, a publicly owned water disrnct formed and operating under the terms and provisions of KRS Chapter 74, having its offices at the Morgan County Office Building, 450 Prestonsburg St., West Liberty, Kentucky, the "Purchaser".

RECITALS

The Seller currently is selling treated potable water to the Purchaser and desires to sell additional water to the Purchaser; and

The Purchaser desires to purchase additional water from the Seller to serve additional customers and areas of the county; and

The parties have entered into a Memorandum of Understanding with the Department of Local Government to jointly fund an expansion of Seller's water treatment facilities; and

It is in the interest of both the Seller and the Purchaser to enter into this Agreement;

PUBU "EAV c3 Therefore, it is agreed by the Seller and Purchaser that .in consideration of &e+,#g&\!%kd

promises and conditions: EFFECT iVE

1. Quality and Quantity PURSUANT TJ 897 K A i i 501 1, SECTION 9 ( 1) . .

a. To hmish the purchaser at the points of delivery, during&&%& is @ ement or any renewal or extension, potable treated water meeting applicable purity s ~ 8 F d i H % @ ? 4 ! ? S 8 @ k and federal regulatory agencies.

b. Upon completion of construction and initial operation of the Seller's proposed new water treatment plant, the Purchaser's maximum purchase of water shall not exceed 12,000,000 gallons per month or 400,000 gallons per day. The Purchaser's minimum purchase of water shall be 2,250,000 gallons per month. Seller agrees to reserve sufficient capacity in its treatment facilities to provide this volume of water for the life of the Agreement, provided all water purchased by Purchaser is for resale within Morgan County. Purchases of water by Purchaser for resale to out-of-county users shall be subject to approval by

- .. - Seller. **-a

c. If Purchaser exceeds the maximum purchase limits, the Seller may restrict deliveries to the maximum purchases allowed.

2. Points of Delivery and Pressure

a. To furnish water at a reasonably constant pressure at the following locations:

Location Avg. Quantity Avg. Pressure

County Metering 400,000 gal lons 8Opsi p o i n t s per day

b. If a greater pressure than available at the point of delivery is required by the Purchaser, the cost of providing such greater pressure shall be borne by the Purchaser. Emergency failures of pressure or supply due to main supply breaks, power failures, equipment failure, flood, fire, use of water to fight fire, earthquake, or other catastrophe shall excuse the Seller from this provision for such reasonable periods of time as may be necessary to restore service. Seller agrees to make a good faith effort to restore service within a reasonable time after it becomes aware of the problem.

3. Metering Equipment

a. To maintain and calibrate metering equipment whenever requested by the Purchaser, but not more frequently than once every twelve months. A meter registering not more than two percent (2%) above or below the test result shall be deemed to be accurate.

b. The previous readings of any meter disclosed by testing to be inaccurate shall be corrected for the six months previous to such testing in accordance with the percentage of inaccuracy found by such testing. If any meter falls to register for any period, the amount of water furnished during such period shall be deemed to be the amount of water delivered in the corresponding period immediately prior to failure, unless Seller and Purchaser agree upon a different amount.

c. The metering equipment shall be read on the 15th day opkfE&v@. A designated official of the Purchaser at all reasonable times shall have access to the meter for the purpose of venfylng its readings.

PUBLIC SESL’lCE C3uh1ISSION

JuL 22 1999 4. Billing Period PURSLNNT T J eo? K A n 501 1,

SECTION s: / 1 i a. To furnish the Purchaser at the above address not later&ar6&&.@& $&6h month with

an itemized statement of the amount of water furnished the Purchaser d ~ w T h e c p r e l s o & f i g w .

U. The Purchaser agrees:

1. Rates and Payment Date

a. To pay the Seller, not later than the l o t w a y of each month, the rate of $2.25 per gallons of water purchased, which shall be the base rate of this Agreement.

000

b. The base rate may be adjusted periodically by Seller to reflect increases in the cost of

treating water and providing service to the Purchaser. Any increase in the cost of treating water or providing service to the Purchaser shall include all operating, maintenance, administrative and other costs and any capital improvements related to the actual cost of treating and distributing water sold to and delivered to the Purchaser.

c. The parties may negotiate an adjustment of rates at any time and if accepted by both parties shall be adopted and a new schedule of rates implemented.

d. If the Purchaser exceeds its monthly purchases as provided in section I.( I), the Seller may charge the Purchaser for ail excess purchases a rate of one hundred ten percent (1 10%) of the base rate.

e. If the Purchaser fails to purchase it minimum monthly water volumes as provided in section I.(l), the Purchaser shall pay to Seller the amount due as if the minimum had been purchased.

f. Failure to make timely payments will result in a penalty of ten percent (10%) per-month on each invoice remaining unpaid.'

2. Connection Fee -

a. The Purchaser agrees to pay to SelIer an additional connection fee to connect the Selleis system with the system of the Purchaser. The fee, which shall cover any and all costs of the Seller for installation and maintenance of the metering equipment, shall be the actual costs of labor, material, and equipment of an independent Agreement to install such facility. In lieu of an agreed cost, the Purchaser, at the approval of the Seller, may construct the meter facilities to the Seller's specifications and contribute the facilities to the Seller.

- 3. Capitalization improvements for Future Delivery of Water

Z. The terms of this Agreement do not guarantee delivery of water W W . U e i W of delivery without assessment for required capital improvements within the Seller's sys&#!!&chaser agrees to pay for all capital improvements required to deliver the water to the Purchaser r e an to maintain adequate pressure and flow within the Seller's water distribution system. JuL 22 1999

4. Metering Equipment PURSUANT Ti3 807 KAR 501 1. SECTION 9 (1)

a. To furnish, install, operate, and maintain at its own expensgtt ppsL@iew 9 the necessary metering equipment, including a meter house or pit, and required d e V ~ ~ E ~ ~ \ , & # ~ & $ .dmQior properly measuring the quantity of water delivered by Seller.

LTI. Miscellaneous

1. Term of Agreement

a. That this Contact shall extend for a term of 40 years from the effective date and may be renewed or extended for such term, or terms, as may be agreed upon by the Seller and Purchaser.

In witness of these terms, conditions and consideration, the parties execute this Agreement as evidenced by their signatures:

Morgan County Water District

Date: June 3, 1999 -

City of West Liberty

Title: U

Date: June 3, 1999

revised: 511 9/99

ADDENDUM TO WATER PURCHASE CONTRACT OF JANUARY 19.1996

The pames agree that the rate charged by Seller for water and the rate paid by Purchaser

for water from Seller pursuant to the Water Purchase Contract of January 19, 1996, shall

be increased to $2.25 per 1000 gallons for ail water purchased on and after October 1,

1999. All other provisions shall remain in full force and effect untd implementation of

the Water Purchase Agreement between West Liberty and Morgan County Water District

dated June 3,1999.

In witness of these terms, conditions, and consideration, the parhes execute this

Agrement as evidenced by their signatures:


By:

Title:

Date: 6-/3-44

City of West Liberty

By:

Title:

k%LzW* m-deq t

4

ADDENDUM TO WATER PURCHASE CONTRACT OF 23.1997

The parties agree that the rate charged by Seller for water and the rate p d by

Purchaser for water from Seller pursuant to the Water Purchase Contract of June 23,

1997, shall be increased to $2.25 per 1000 gallons for all water purchased on and after

October 1,1999. All other provisions shall remain in 111 force and effect untd

implementation of the Water Purchase Agreement between West Liberty and Morgan

County Water District dated June 3,1999.

In witness of these terms, conditions, and consideration, the pames execute this

Agreement as evidenced by their signatures:


By: €4 a Title:

Title: 7- Date: 6 7Y-479

I/

4

ADDENDUM TO WATER PURCHASE CONTRACT OF MAY 15.1996

The parties agree that the rate charged by Seller for water and the rate paid by

Purchaser for water from Seller pursuant to the Water Purchase Contract of May 15,


October 1, 1999. AI1 other provisions shall remain in fidl force and effect until


County Water District dated June 3, 1999.

In witness of these tenns, conditions and consideration, the parties execute this -



By: 2 4 & A Title:

Date: 6 - - - e PUB! 92-

Title:

Date: 6 --/ ? (J


730 SCHENKEL LANE POST OFFICE BOX 61 5 FRANKFORT, KY. 40602

(502) 564-3940

September 14, 1999

Jerry Jackson Manager Morgan County Water District

' 450 Prestonsburg Street West Liberty, KY. 41472

RE: Case No. 99-352 MORGAN COUNTY WATER DISTRICT

The Commission staff has reviewed your response of September 10, 1999 and has determined that your application in the above case now meets the minimum filing requirements set by our regula- tions. Enclosed please find a stamped filed copy of the first page of your filing. processed as expeditiously as possible.

This case has been docketed and will be

If you need further information, please contact my staff at 502/564-3940.

Sincerely, w** Stephanie Bell b-c Sec;etary of the Commission

SB/hv Enclosure

' . 6

c

I PURCHASED WATER ADJUSTMENT FOR-

RECEIVED - WATER DISTRICTS AND ASSOCIATIONS (807 KAR 5:068) -


(Name of Utility)

August 18, 1999 (Date)

450 Prestonsburg Street

(Address)

West Liberty, KY. 41472 (City, Statel

606-743-1204 (Telephone Number)

PUBLIC SERVICE COMMISSION


City of West Liberty, KY.

Base Rate

2.10

Chanaed Rate

2.25

1.b. A copy of the supplier's notice of the changed rate showing the effective date of the increase is attached as Exhibit .

Paul E. Patton Governor


730 SCHENKEL LANE POST OFFICE BOX 615


(502) 564-3940 Fax (502) 564-3460

www.psc.state.ky.us

Ronald B. McCloud, Secretary Public Protection and

Regulation Cabinet



September 2, 1999

Mr. Jerry Jackson, Manager Morgan County Water District 450 Prestonsburg Street West Liberty, Kentucky 41472

Re: Case No. 99-352

Dear Mr. Jackson: I,

Filing Deficiencies ~

I

The Commission staff has reviewed your application in the above case. This filing is rejected pursuant to 807 KAR 5:001, Section 2, for the reasons set forth below. These items are either required to be filed with the application or to be referenced in the application if they are already on file in another case or will be filed at a later date.

Filing deficiencies pursuant to 807 KAR 5068:

Section 3 - Total gallons of water purchased from each supplier during a twelve-month period ending within 90 days of the effective date of rate adjustment; total gallons sold for the same twelve months.

Section 3( 1) - Application must contain information sufficient to determine the accurateness of the calculations of the PWA.

The statutory time period in which the Commission must process this case will not commence until the above-mentioned information is filed with the Commission. You are requested to file five copies of this information (unless otherwise noted) within 15 days of this letter. If you need further information, please contact Renee Curry of my staff at 502-564-3940, extension 228.

Since rely ,

hv Stephanie Bell Secretary of the Commission

AN EQUAL OPPORTLMTY EMPLOYER M/F/D

COMMONWEALTH O F KENTUCKY PUBLIC SERVICE COMMISSION


FRANKFORT, KY. 40602 (502) 564-3940

August 25, 1999

Jerry Jackson Manager Morgan County Water District 450 Prestonsburg Street West Liberty, KY. 41472

RE: Case No. 99-352 MORGAN COUNTY WATER DISTRICT (Rates - PWA)

This letter is to acknowledge receipt of initial application in the above case. The application was date-stamped received August 23, 1999 and has been assigned Case No. 99-352. In all future correspondence or filings in connection with this case, please reference the above case number.

If you need further assistance, please contact my staff at 502/564-3940.

Stephanie Bell Secretary of the Commission

PURCHASED WATER ADJUSTMENT FOR WATER DISTRICTS AND ASSOCIATIONS

(807 KAR 5:068)


(Name of Utility)

August 18, 1999 (Date)

450 Pres tonsburg S t r e e t

(Address)

West L i b e r t y , KY. 41472 (City, State)

606-743-1204

(Telephone Number)

RECEUVEB


Sumlier(s1 Base Rate Chansed Rate

C i t y of West L i b e r t y , KY. 2.10 2.25

1 .b. A copy of the supplier's notice of the changed rate showing the effective date of the increase is attached as Exhibit -

2. Twelve-month period upon which the purchased water adjustment is based, (This twelve-month period must end within 90 days of this filing).

May 1999 through June 1998 From (month and year) (month and year)

3. Statement of water purchases. Where water is purchased f rom more than one supplier, purchases from each supplier must be shown separately. If water is purchased through a decling block rate schedule, purchases for each month must be shown. Attach an additional sheet if necessary.

Supplier (s)

City of West L i b e r t y

Gallons Purchased during 12 month period

43,116,000

TOTAL PURCHASES 43,116,000

31,635,880 4. Total sales for the 12 month period

$6468.00 5. Increased water cost

The increased water cost is the cost difference between purchases a t base (current rate) and purchases at n e w rate.

6. Purchased water adjustment factor e 2 0

The purchased water adjustment factor is obtained by dividing the increased cost of water by the total gallons sold.

Note: The purchased water adjustment factor is added to each thousand gallons sold. If the minimum usage is 2,000 gallons then the purchased water adjustment factor would be added to the minimum bill twice. Revised tariff sheets must be attached showing the rate to be charged by the utility and the effective date of the increased rates.

7. Proposed effective date 10/1/99

(Signature of Utility Officer)

Chairman Lfa Chairman (Title)

a FOR Morgan County

0 P u i h 'fbr filing Rate Schedules Community, Town or City 8

P . S . C . KY. NO.

SHEET NO. Morgan County Water D i s t r i c t CANCELLING P . S . C . KY NO.

SHEET NO.

CLASSIFICATION OF SERVICE I

RATE PER UNIT MONTHLY RATES

5/81' x 3/4" Meter

F i r s t 2,000 g a l l o n s Next 3,000 g a l l o n s Next 5,000 g a l l o n s Next 5,000 g a l l o n s Over 15,000 g a l l o n s

1'' Meter

F i r s t . 5 ,000 g a l l o n s Next 5,000 g a l l o n s Next 5,000 g a l l o n s Over 15,000 g a l l o n s

$13.85 Minimum B i l l 5.80 p e r 1,000 g a l l o n s 4.80 p e r 1,000 g a l l o n s 4.55 p e r 1,000 g a l l o n s 4.30 p e r 1,000 g a l l o n s

:31.25 Minimum B i l l 4.80 p e r 1,000 g a l l o n s 4.55 p e r 1,000 g a l l o n s 4.30 p e r 1,000 g a l l o n s

2" Meter

F i r s t 15,000 g a l l o n s 78.00 Minimum B i l l Over 15,000 g a l l o n s 4.30 p e r 1,000 g a l l o n s

5.00 p e r 1,000 g a l l o n s Bulk Loading S t a t i o n s

A su rcha rge of $5.35 w i l l be a s s e s s e d t o t h e S tacy Fork, 1162, and E z e l ex tens ions .

DATE OF ISSUE DATE EFFECTIVE MONTH DATE YEAR MO"H DATE YEAR

ISSUED BY TITLE SIGNATURE OF OFFICER

Issued by authority of an Order of the Public Service Commission of Kentucky in'Ca No . dated

Paul E. Patton COVernOr




(502) 564-3940 Fax (502) 564-3460

www.psc.state.ky.us

e

Ronald E. McCloud, Secretary Public Protection and

Regulation Cabinet



August 12, 1999

John N. Hughes Attorney at Law Professional Service Corporation 124 West Todd Street Frankfort, Kentucky 40601

RE: Contract Filing No. C60-722, on behalf of Morgan County Water District, of a Water Purchase Contract with the City of West Liberty. -

Dear Mr. Hughes:

accepted copy is enclosed for p r files.

- The above referenced Contract filing has been received and reviewed. An

S i nce re1 y ,

d s s Helton Tariff Review Branch Filings Division

Enclosure

AN EQUAL OPPORTUN~~Y EMPLOYER rmm

a

.. , <

.-D

This Agreement is made on the 3rd day of June , 1999, between the city of West Liberty, Kentucky, a municipal corporation, having its offices at 565 Main St., West Liberty, Kentucky, the "Seller" and the Morgan County Water District, a publicly owned water district formed and operating under the terms and provisions of KRS Chapter 74, having its offices at the Morgan County Office Building, 450 Prestonsburg St., West Liberty, Kentucky, the "Purchaser".

RECITALS

The Seller currently is selling treated potable water to the Purchaser and desires to sell additional water to the Purchaser; and

The Purchaser desires to purchase additional water from the Seller to serve additional customers and areas of the county; and

The parties have entered into a Memorandum of Understanding with the Department of Local Government to jointly fund an expansion of Seller's water treatment facilities; m d

It is in the interest of both the Seller and the Purchaser to enter into this Agreement;

PUBU EriV 'C3 I Therefore, it is agreed by the Seller and Purchaser that .in consideration of&q,&&btwal

promises and conditions: EFF ECTiVE

L The Seller Agrees: . JuL 22 1999

1. Quality and Quantity I'URSUANT T9 837 KAH 501 1, SECTION 9 (I)

a. To furnish the purchaser at the points of delivery, during&&& is & ement or any renewal or extension, potable treated water meeting applicable punty s ~ @ F ~ & ~ ~ ! s 8 W e , and federal regulatory agencies.

b. Upon completion of construction and initial operation of the Seller's proposed new water treatment plant, the Purchaser's maximum purchase of water shall not exceed, 12,000,000 gallons per month or 400,000 gallons per day. The Purchaser's minimum purchase of water shall be 2,250,000 gallons per month. Seller agrees to reserve sufficient capacity in its treatment facilities to provide this volume of water for the life of the Agreement, provided all water purchased by Purchaser is for resale within Morgan County. Purchases of water by Purchaser for resale to out-of-county users shall be subject to approval by Seller.

c. If Purchaser exceeds the maximum purchase limits, the Seller may restrkt deliveries to the maximum purchases allowed.

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2. Points of Delivery and Pressure e

a. To hmish water at a reasonably constant pressure at the following locations:

Location Avg. Quantity Avg. Pressure

County Metering 400,000 gallons 8Opsi points per day

b. If a greater pressure than available at the point of delivery is required by the Purchaser, the cost of providing such greater pressure shall be borne by the Purchaser. Emergency failures of pressure or supply due to main supply breaks, power failures, equipment failure, flood, fire, use of water to fight fire, earthquake, or other catastrophe shall excuse the Seller from this provision for such reasonable periods of time as may be necessary to restore service. Seller agrees to make a good faith effort to restore service within a reasonable time after it becomes aware of the problem.

3. Metering Equipment

a. To maintain and calibrate metering equipment whenever requested by the Purchaser, but not more frequently than once every twelve months. A meter registering not more. than two percent (2%) above or below the test result shall be deemed to be accurate.

b. The previous readings of any meter disclosed by testing to be inaccurate shall be corrected for the six months previous to such testing in accordance with the percentage of inaccuracy found by such testing. If any meter falls to register for any period, the amount of water finished during such period shall be deemed to be the amount of water delivered in the corresponding period immediately prior to fdm, unless Seller and Purchaser agree upon a different amount.

c. The metering equipment shall be read on the 15th day oP&&@#p. A designated official of the Purchaser at all reasonable times shall have access to the meter for the purpose of verifying

PUBLIC SE~~~ICE C~MMISSION

its readings. JUL 22 1999 4. Billing Period PURSiM4T T3 e07 I ( A ~ ) 3:011,

' SECTION 9 (1) a. To furnish the Purchaser at the above address not later&ad%dkk@' o&tTh month with

an itemized statement of the amount of water hrnished the Purchaser d a f v t g T h e W 8 6 W l 3 e .

II. The Purchaser agrees:

1. Rates and Payment Date

a. To pay the Seller, not later than the l o t m a y of each month, the rate of $2.25 per 1000 gallons of water purchased, which shall be the base rate of this Agreement.

b. The base rate may be adjusted periodically by Seller to reflect increases in the cost of

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treating water and providing service to the Purchaser. Any increase in the cost of treating water or providing service to the Purchaser shall include all operating, maintenance, administrative and other costs

delivered to the Purchaser. l and any capital improvements related to the actual cost of treating and distributing water sold to and

c. The parties may negotiate an adjustment of rates at any time and if accepted by both parties shall be adopted and a new schedule of rates implemented.

d. If the Purchaser exceeds its monthly purchases as provided in section L(l), the Seller may charge the Purchaser for all excess purchases a rate of one hundred ten percent (110%) of the base rate.

e. If the Purchaser fails to purchase it minimum monthly water volumes as provided in section I.(l), the Purchaser shall pay to Seller the amount due as if the minimum had been purchased.

f. Failure to make timely payments will result in a penalty of ten percent (10%) per month on each invoice remaining unpaid.'

2. Connection Fee

a. The Purchaser agrees to pay to Seller an additional connection fee to connect the Seller's system with the system of the Purchaser. The fee, which shall cover any and all costs of the Seller for installation and maintenance of the metering equipment, shall be the actual costs of labor, material, and equipment of an independent Agreement to install such facility. In lieu of an agreed cost, the Purchaser, at the approval of the Seller, may construct the meter facilities to the Seller's specifications and contribute the facilities to the Seller.

3. Capitalization improvements for Future Delivery of Water

a. The terms of this Agreement do not guarantee delivery of water RblMlfEW@mdM p@kk of delivery without assessment for required capital improvements within the Seller's sy@&!!$chuer agrees to pay for all capital improvements required to deliver the water to the Purchaser an to maintain adequate pressure and flow within the Seller's water distribution system. JUL 22 1999

4. Metering Equipment PURSUANT T9 807 KAR 501 1,

a. To furnish, install, operate, and maintain at its own expensg necessary metering equipment, including a meter house or pit, and required de properly measuring the quantity of water delivered by Seller.

LIT. Miscellaneous

1. Term of Agreement

a. That this Contact shall extend for a term of 40 years fiom the e,ffective date and may be renewed or extended for such term, or terms, as may be agreed upon by the Seller and Purchaser.

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In witness of these terms, conditions and consideration, the parties execute this Agreement as I e’videnced by their signatures:


Title:

Date: June 3, 1999 -

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City of West Liberty -

Title: U

revised: 5/19/99

0 e

ADDENDUM TO WATER PURCHASE CONTRACT OF JANUARY 19.1996

The parhes agree that the rate charged by Seller for water and the rate paid by Purchaser

for water fiom Seller pursuant to the Water Purchase Contract of January 19,1996, shall

be increased to $2.25 per 1000 gallons for all water purchased on and after October 1,

1999. All other provisions shall remain in full force and effect until implementation of

the Water Purchase Agreement between West Liberty and Morgan County Water District

dated June 3,1999.

In witness of these terms, conditions, and consideration, the parties execute this



By:

Title:

Date: 6 - 1 y - q ~

JUL 22 1999 City of West Li'berty

t

By:

Title: / I

ADDWUM TO WATER PURCHASE CONTRACT OF JUNE 23.1997


Purchaser for water from Seller pursuant to the Water Purchase Contract of June 23,


October 1,1999. All other provisions shall remain in 1 1 1 force and effect until

implementation of the Water Purchase Agreement between West Liiberty and Morgan


In witness of these terms, conditions, and consideration, the parhes execute this



Title:

Title: 7- \ I

Date: 6 4 - - 4 9

ADDENDUM TO WATER PURCHASE CONTRACT OF MAY 15.1996


Purchaser for water from Seller pursuant to the Water Purchase Contract of May 15,


October 1,1999. All other provisions shall remain in 111 force and effect until



In witness of these terms, conditions and consideration, the parties execute this



By: zd/&,& Title:

Title:

Date: 6 -1 '? 0

ORDER Commonwealth

of Kentucky Before The Public Service

Commission In the Matter of: ,

3 Purchased Water , Adjustment of Morgan County Water

District Case NO. 99-352

On August 23, 1999, Morgan County Water District ("Morgan County") applied for approval to adjust its rates pursuant to the purchased water adjustment procedure. KRS 278.015 and 807 KAR 5:068. On September 10, 1999, Morgan County submitted an amended application and its case was officially filed.

The Commission, having reviewed the record and being sufficiently advised, finds that:

1. Morgan County purchases its water from the City of West Liberty ("West Liberty").

2. West Liberty is increasing the wholesale water rate charged to Morgan County from $2.10 per 1 nnn -,.ii--- .- 6-q +c _-- I nnr\ 1,UUU gdllulls tu 4L.L.l pel 1,uuu gallons purchased, effective Octo- ber 1, 1999.

3. During the 12 months ending August 31, 1999, Morgan County purchased a total of 45,429,000 gallons of water and sold 33,733,792 gallons.

4. The increase in the cost of purchased water will be $6,814.35, resulting in a purchased water adjustment of $0.20 per 1,000 gallons of water. Based on a monthly usage of 5,000 gallons, the average bill of a Morgan County customer would increase $1 .OO from $30.25 to $3 1.25 or 3.3 percent.

5. The calculations and tariff provided by Morgan County in its amended application are correct and should be approved. .

6. The purchased water adjust- ,Inent of $0.20 per 1 lIO0 gallnns and the .rates in Appendix A, attached hereto and incorporated herein, are fair, just, and reasonable and should

INVITATION TO BID . Separate sealed bids for Contract

5: Water and Sewer Extensions, . Of Kentucky consisting ofwater line, sewer lines, ' a wastewater-pump station and con-, duit for underground electric and. telephone lines, at the MMRC Re-' gional Industrial Park, will be re-

NOTICE OF SALE . '

Morgdn Circuit Court Civil Action No.

Commercial Bank of West Liberty, Plaintiff

97-@I-00203

ceived by Terry Ensor, Chairman, at the office of the Menifee, Morgan, Rowan, 'Carter Industrial Develop- ment Authority, 600 Industry Road,

's. Julie Cruff and William R. Hum- me11 and Bonnie R. Hummell, De- fendants, Third Party Plaintiffs

Morehead, Kentucky '4035 I , until 1 1O:OO a.m., on .October' 2 I , 1999, and then at said location publicly opened and read aloud;.

TCe C0N.TRACT , DOCU- ,MENTS may be reviewed .at the

', ;.Menifee, Morgan, Rowan, Carter .Industrial ,Development Authority, 600 Industry.Road, Morehe,ad, Ken-,

Mayes, 'Sudderth .& Etheredge, ,Inc., 624 Wellington Way,,,LexingA

F.W: Dodge/ABC, 132 'Venthe; Court, Suite .I 2, .Lexington,,' Ken-

, F.W. 'Dodge, 855 Eden Park ' Drive, Suite SlS,.Cincinnati, . , Ohio; .,

,Builder 's Exchange,, ' 2300 Meadow Drive, Louisville,' Ken: tucky', ' .

AGC of Kentucky; 2321 Fortune Drive, Lexington, Kentucky ' "

Copies of- the Contract Docu- ments may be obtained at'the o'ffice oEMetro Blueprint, located at 1328 Versailles Road, .Lexington, Ken: i kky 40504 (606) 252-1459);upon receipt of a nonrefundable printi.ng and shipping charge of $50. . .. :.

Each bidder must deposit with his bid, security in the''.'.amount, f o g ; and subject to the conditions provided in the information for .Bid-.

'The Owner may consider infor- mal any bid not prepared and submitted in accordance'with'lhe provisions of this advertisement and/or the specifications and may :waive any informalities or reject any and all Bids. , '

No Bidder may withdraw his.Bid for a period of ninety (90) days after the actual date of the opening thereof.

Award'will be made to the lowest responniSle: responsive Bidder. -

following locations: ;. I . ' I .

, . , tucky ' . !. .

ton,'Kentuqky , i . . . .

tucky ' . , 'I , . . .

I ders., '1 ' * ,. ." i . , '

C-9-30-3t . (Sept. 30-Oct. 7-14) . ,

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Vb;

. , Ruby Lee Jenkins 'and Betty Je,n- kins, Third Party Defendants,

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.' Fourth, Phrty.'Plaintiffs vs. Kentucky Farm Bureau Mutual'Jn, surawe Company; Fourth Party De- fendants " ~.

' , Pursuant to the 'Judgment. and ; Order of Sale in the'Morgan Circuit. ' Court, entered on the 16th day of : September,. 1999, i n ' the"alj,ove ,,styled action,,' Hon. Gary .E: Cbnn,

fiaster Cbmmissioner'of ttie Mor- gan Circuit Court, shall .proceed to offer :for sale, under the following

.. terns and conditions, : at the .'front .door of the Courthouse, 'West Lib- erty, Kentucky 41472, to, the high-

!-.est and best bidder, 'at.public ,auc- I .

tion, on the 25th'.day of, October, 1999 at:the hour of 11:OO a.m., the folrowing described property, lying

' adbe ing in the State of Kentucky, County of Elliott and more particu- larly desyibed. as follows,,to-,wit: , '.:'On the waters of Big Painr Creek: Beginning at a tile under U.S. High: way 1260; .thence up and with a branch to a dug well and asteel post

., painted orange at the Buford Jeni kins line; then'ce with the:Buford ', Jenkins line to, a corner. oak tree,o\n .the main ridie, said oak. tree being a

b corner .of -8ufo~rd Jenkins; Ricky Jenkins,' Frank 'Pennington ,and. the. property ' herein conveyed; thence . ' with the Ricky Jenkins property l'',@,! which is already marked with a steel post and painted tree's to the. U.S. Government- line; thence with. the US. Government. line to the' point of beginning, containing 20 acres, more or less, it is sold by the bound:

I ary not by the acre. ' . The aforementioned real es'tate can not be divided without materi- ally impairing it's value and shall be s.old as a whole. The real estate shall be sold on a credit of thirty .(30) days, with the privilege of the purchaser to pay for bid i n cash; certi-.

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- i 1. the rates in Appendix are ap-

proved for services rendered on and 5 after October 1, 1999.

2. The amended tariff submitted 1 by Morgan County is hereby ap- , proved as filed. ) 3. Within 20 days from the effec- . tive date of this Order, Morgan ' County shall file a copy of the no- : tice to its customers and verification

that such notlce has been given. Done at Frankfort, Kentucky, this

29th day of September, 1999. l By theCommission ,

' Executive Director t Appendix A I i APPENDIX TO AN ORDER OF " T H E KENTUCKY PUBLIC : SERVICE COMMISSION IN

: TEMBER 29, 1999

ATTEST:

h

1; CASE NO. 99-352 DATED SEP-

The following rates and charges' are prescribed for the customers in the area served by Morgan County Water District. All other rates and charges not specifically mentioned herein shall remain the same as those in effect under authority of the Commission prior to the effective date of this Order.

Monthly Water Rates ~

518 inch x 314 inch meter First 2,000 gallons, $13.85 Mini-

mum bill. Next 3,000 gallons, 5.80 per

1,000 gallons. Next 5,000 gallons, 4.80 per


1,000 gallons. Over 15,000 gallons, 4.30 per

1,000 gallons. 1 inch meter First 5,000 gallons, $3 1.25 Mini-

mum bill. Next 5,000 gallons, 4.80 per


1.000 gallons. Over 15,000 gallons, 4.30 per

1,000 gallons. 2 inch meter First 15,000 gallons, $78,00

Minimum bill. Over 15,000 gallons, 4.30 per

1 ,000 gallons.

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(2-10-7- 1 t

NOTICE As of September 28, 1999, I will

not be held responsible for any debts or contracts entered into by anyone other than myself.

Dewey Joe Privett 372 Hwy. 1003 West Libeyty, Ky. 41472 C-9-30-2t pd.

Straight Creek has been posted. Hunting, four-wheeling, or any kind of activities is not permitted. Tres- passers will be prosecuted.

Grace Burchett 7845 Hwy. 172 West Liberty, Ky. 41472

(Pub. Sept. 30-Oct. 7-14) C-9-30-3t pd

BID NOTICE Grace Baptist, Church. Malonc.

Ky., is accepting bids for thc ititcr- nal. work on ail 8,000 square. I.(,N)L .building. Contact Keith, Holhrook after 4.p.m. for more jnforma,t.ion ai 743-4036. I .

C-10-7-3t \ . . , .

NOTICE TO BID The West Liberty Water Depart-

ment will be accepting sealed bids on a new pickup truck. Specifica- tions as follows: Four Wheel Drive, Extend Cab, Short Bed, V-6 Engine (4300 Vortex or Equivalent), Tow- ing Package, Recovery Hooks, Full size Spare Tire, Color-Summit White, Power Outlets Auxiliary, AM/FM Stereo, PLlr tonditioning. Sealed Bids' will be' accepted through 4:OO p.m., Monday, Octo- ber 25, 1999.!Sealed JSids may be mailed or submitted to The\City of West Liberty Adm. Office, 565 Main Street. West Libertv. KY 41472. Bids to be opened'at the "

Regular Co6ncil Meeting, October 25, 1999, 5:30 p.m, The City of West Liberty reserves the right to reject any or all bids.

C-10-7-2t (Oct. 7- 14)

[ 1 UYO) percent ot the purchase price to cover the costs of the judicidl'. sale; and the purchaser shall execute a bond for the remainder of the purchase :price, with good' surety thereon, to. be approved by the Mas:

' ter Commissioner of this Court, and bearing interest at,,the rate of twelve (12%) percent per annum from the date of the sale, until paid; addition- ally, a lien shall be retained upon the,' real estate to,be sold herein,,to se-. cure the. payment of the.balance of,, the purchase price with i n thirty , '

(30) days of the d.ate of sale upon 'which execution may be levied by ,

the Master Commis,sioner of this, court. . .

Upon default of said deposit or ' posting a bond, by the purchaser or "

purchasers, rhe Master Commis- ' sioner shall immediately' resell the property upon the' same- terry and. conditionsset outherein. . .~ . .

The hereinabove described 'real '

property shall:be,sold free and clear of, the claims,: -interests, liens and, ; encumbrances of a11 parties ,herein;. . except restrictions and, easements appearing 'of record, in the, Morgan ,County Court Clerk'.s;Office:. ' ' ,.

.:'The purchaser shall 6e required to assume, and. pay .all taxes'assessed against such property for. the year 1999 and'all subsequent years. This. prop'eFy shall be sold subject'to any ,ad valorem .and realil.-property hTes .not d,elinquent as of th ,- Hdn. 'Gary E. Conn

' ' , Master. Commissioner.

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Morgan Circuit Court .: ' C-9-30-3t . .: ', , - , i

. . 1 ' (Sept.;30-OCt..7-14).. ., ' ;L. , , , ...; . . : .' , i .

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